$DOCN

DigitalOcean Holdings, Inc.

CIK:0001582961|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 281,184	$ 218,700	$ 539,089	$ 429,403
Cost of revenue	126,522	87,755	239,717	169,014
Gross profit	154,662	130,945	299,372	260,389
Operating expenses:
Research and development	57,515	39,644	106,345	79,238
Sales and marketing	22,568	19,288	44,237	38,689
General and administrative	45,208	36,394	82,848	69,201
Total operating expenses	125,291	95,326	233,430	187,128
Operating income	29,371	35,619	65,942	73,261
Other (expense) income:
Interest expense	(7,463)	(2,239)	(18,016)	(4,447)
Loss on extinguishment of debt, net	0	(269)	(2,700)	(269)
Interest income and other income, net	5,234	9,337	6,412	15,283
Other (expense) income, net	(2,229)	6,829	(14,304)	10,567
Income before income taxes	27,142	42,448	51,638	83,828
Income tax benefit (expense)	8,295	(5,421)	(430)	(8,597)
Net income attributable to common stockholders	$ 35,437	$ 37,027	$ 51,208	$ 75,231
Net income per share attributable to common stockholders
Basic (in dollars per share)	$ 0.34	$ 0.41	$ 0.52	$ 0.82
Diluted (in dollars per share)	$ 0.29	$ 0.39	$ 0.45	$ 0.77
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic (in shares)	104,611,000	91,097,000	98,856,000	91,538,000
Diluted (in shares)	126,548,000	100,617,000	118,708,000	101,521,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income attributable to common stockholders	$ 51,208	$ 75,231
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	96,629	61,975
Stock-based compensation	55,231	40,513
Provision for expected credit losses	8,078	8,607
Loss on extinguishment of debt, net	2,700	269
Operating lease right-of-use assets and liabilities, net	(30,810)	(13,816)
Non-cash interest expense	2,960	4,005
Other	3,476	(7,853)
Changes in operating assets and liabilities:
Accounts receivable	(32,230)	(17,064)
Prepaid expenses and other current assets	(53,906)	1,201
Accounts payable and accrued expenses	6,536	(3,029)
Deferred revenue	47,157	5,867
Other assets and liabilities	(140)	631
Net cash provided by operating activities	156,889	156,537
Investing activities
Capital expenditures - property and equipment	(81,576)	(95,160)
Capital expenditures - internal-use software	(11,785)	(3,412)
Acquisition of equipment under financing arrangements	(51,544)	0
Purchase of intangible assets	(754)	(1,835)
Cash paid for acquisition of businesses, net of cash acquired	(4,042)	0
Net cash used in investing activities	(149,701)	(100,407)
Financing activities
Proceeds from follow-on public offering, net of underwriting discounts and issuance costs	887,888	0
Principal repayment of Term Loan Facility	(500,000)	0
Proceeds from drawdown of Term Loan Facility	120,000	0
Payment of debt issuance costs	0	(4,081)
Proceeds related to issuance of common stock under equity incentive plan	3,558	2,771
Proceeds from issuance of common stock under employee stock purchase plan	2,494	2,660
Employee payroll taxes paid related to net settlement of equity awards	(38,406)	(16,294)
Proceeds from financing arrangements	51,544	0
Principal repayments of finance leases and financing arrangements	(21,651)	(2,733)
Repurchase and retirement of common stock including related costs	0	(79,199)
Net cash provided by (used in) financing activities	505,427	(96,876)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(66)	45
Increase (decrease) in cash, cash equivalents and restricted cash	512,549	(40,701)
Cash, cash equivalents and restricted cash - beginning of period	254,633	430,193
Cash, cash equivalents and restricted cash - end of period	767,182	389,492
Supplemental disclosures of cash flow information:
Cash paid for interest	14,349	249
Cash paid for taxes, net of refunds	2,524	5,757
Operating cash flows paid for operating leases	77,925	72,310
Non-cash investing and financing activities:
Capitalized stock-based compensation	2,021	875
Property and equipment received but not yet paid, included in accounts payable and accrued other expenses	20,434	32,038
Operating right-of-use assets obtained in exchange for operating lease liabilities	273,823	123,637
Finance right-of-use assets obtained in exchange for finance lease liabilities	$ 414,902	$ 636

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 767,026	$ 254,475
Accounts receivable, less allowance for credit losses of $6,812 and $6,374, respectively	115,000	90,908
Prepaid expenses and other current assets	135,584	81,598
Total current assets	1,017,610	426,981
Noncurrent assets:
Property and equipment, net	1,049,332	589,094
Restricted cash	156	158
Goodwill	350,651	348,674
Intangible assets, net	93,373	99,504
Operating lease right-of-use assets, net	505,697	270,854
Deferred tax assets	93,991	90,310
Other assets	12,243	12,130
Total assets	3,123,053	1,837,705
Current liabilities:
Accounts payable	10,387	38,836
Accrued other expenses	70,883	42,679
Deferred revenue	53,039	5,882
Debt, current	311,654	325,109
Operating lease liabilities, current	126,233	108,037
Finance lease liabilities and equipment financing obligations, current	129,777	31,411
Other current liabilities	74,139	67,510
Total current liabilities	776,112	619,464
Noncurrent liabilities:
Deferred tax liabilities	3,952	4,092
Debt, long-term	609,399	970,653
Operating lease liabilities, long-term	352,854	166,895
Finance lease liabilities and equipment financing obligations, long-term	447,943	99,103
Other non-current liabilities	2,062	6,188
Total liabilities	2,192,322	1,866,395
Commitments and Contingencies (Note 9)
Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025)	0	0
Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 105,002,427 and 91,947,614 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)	2	2
Additional paid-in capital	925,014	16,005
Accumulated other comprehensive loss	(1,756)	(960)
Accumulated deficit	7,471	(43,737)
Total stockholders’ deficit	930,731	(28,690)
Total liabilities and stockholders’ deficit	$ 3,123,053	$ 1,837,705